AUSTIN - The City of Austin will invest $3 million and release 107 city-owned acres near Austin-Bergstrom International Airport to private manufacturers in an effort to jump-start industry in the area.

The goal is to use low-cost, long-term leases and access to shipping corridors and recycled materials to attract manufacturers that work with recycled or reused materials to land near a former city landfill.

The effort is projected to drive more than $30 million in private sector development and create as many as 1,250 jobs, while also helping Austin to recycle more.

The deal will rely on a $1 million federal grant from the Federal Economic Development Administration and $2 million in matching funds from Austin. The money will be used to build infrastructure out to the site, which includes lots from two to 20 acres in size.

The city expects to open the 107 acres to a competitive development process later in 2014, and the first businesses could break ground in early 2015.